This paper reviews the literature relevant to understanding political constraints to economic reforms. Reform refers to changes in government policies or institutional rules because status quo policies and institutions are not working well to achieve the goals of economic well-being and development.
... See More + Further, reforms refer to the alternative policies and institutions that are available that would most likely perform better than the status quo. The main question examined in the political economy of reform literature has been why reforms are not undertaken when they are needed for the good of society. The succinct answer from the first generation of research is that conflict of interest between organized socio-political groups is responsible for some groups being able to stall reforms so that they can extract greater private rents from status quo policies. The next generation of research is tackling a more fundamental question: why does conflict of interest persist; or, why do some interest groups exert influence against reforms if there are indeed large gains to be had for society? These are questions about norms and preferences in society for public goods. The next step is to examine where norms and preferences for public goods come from, and which institutional arrangements are more conducive to solve the public goods problem of pursuing reforms. After reviewing the available and future directions for research, the paper concludes with what all of this means for policy makers who are interested in understanding the factors behind successful reforms.
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This Policy Paper presents a menu of reforms that would enable the country to rapidly and significantly turn the page of inaction and decline and return the country to a prosperous and inclusive development path.
... See More + To that end, reforms are prioritized over two time horizons—the first 100 days of the new Government and the medium term. The immediate set of reforms suggested aim at establishing a record of achievements and government credibility that is currently sorely absent; without such a clear statement, policymaking effectiveness will be limited. They will also set the platform for the medium term. Failing to move swiftly on reforms would not only damage the credibility of this government, diminish its chances of success during the upcoming elections, but would also increase the already high level of skepticism that the Lebanese people and the international community harbor when it comes to Lebanon's capacity to take on serious and transformational changes. In short, and contrary to some wishes, the international community's engagement and commitment to help Lebanon will hinge heavily on Lebanon helping itself. The seeming end of a long political stalemate offers Lebanon a unique window of opportunity to mitigate impending risks and tackle longstanding and, by now, pressing development challenges. This sense of urgency is reinforced by a palpable deterioration in the quality of public services, institutions, governance and the business climate, to name a few. Macroeconomic risks and institutional lethargy, have also been compounded by the Syrian war, taking a toll on the economy, which, even prior to the regional turmoil, exhibited significant shortfalls in the provision of more and better jobs. Furthermore, the influx of displaced persons from Syria (estimated at over one million by UNHCR as of September 2016) has placed added strain on Lebanon’s education, health, municipal and other sectors, while exacerbating already notable subnational inequalities. This Policy Paper presents a menu of reforms that would enable the country to rapidly and significantly turn the page of inaction and decline and return the country to a prosperous and inclusive development path. To that end, reforms are prioritized over two time horizons—the first 100 days of the new Government and the medium term. The immediate set of reforms suggested aim at establishing a record of achievements and government credibility that is currently sorely absent; without such a clear statement, policymaking effectiveness will be limited. They will also set the platform for the medium term. Failing to move swiftly on reforms would not only damage the credibility of this government, diminish its chances of success during the upcoming elections, but would also increase the already high level of skepticism that the Lebanese people and the international community harbor when it comes to Lebanon's capacity to take on serious and transformational changes. In short, and contrary to some wishes, the international community's engagement and commitment to help Lebanon will hinge heavily on Lebanon helping itself.
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This Indonesia Economic Quarterly (IEQ) reports on the key developments over the past three months in Indonesia's economy as on January 2017. The return of global policy uncertainty and financial market volatility represent risks to Indonesia’s growth outlook.
... See More + However, Indonesia’s recent economic performance and policy reforms can help weather these risks. Gross domestic product (GDP) growth eased in third quarter as government consumption fell. The current account deficit narrowed and direct investment was strong in third quarter. Domestic financial conditions remain robust despite recent global headwinds. Fiscal policy credibility was enhanced through expenditure cuts in 2016 and more realistic revenue targets in the approved 2017 Budget. Baseline projections for real GDP growth remain at 5.1 percent for 2016 and 5.3 percent in 2017. Improving the quality of public spending is critical for Indonesia to achieve its development goals in the short to medium term. Student-centered teaching practices result in better student learning outcomes.
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Some of the headings included in this issue of the Development Economics Prospects Group (DECPG) global daily economic news are as follows: financial markets; advanced markets; and emerging and developing economies in East Asia and Pacific, Europe and Central Asia, South Asia, and Sub-Saharan Africa.
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Some of the headings included in this issue of the Development Economics Prospects Group (DECPG) global daily economic news are as follows: financial markets; advanced markets; and emerging and developing economies in East Asia and Pacific, Europe and Central Asia, Latin America and the Caribbean, and Sub-Saharan Africa.
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Some of the headings included in this issue of the Development Economics Prospects Group (DECPG) global daily economic news are as follows: financial markets; advanced markets; and emerging and developing economies in Europe and Central Asia, and Middle East and North Africa.
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Some of the headings included in this issue of the Development Economics Prospects Group (DECPG) global daily economic news are as follows: financial markets; advanced markets; and emerging and developing economies in Europe and Central Asia, and Sub-Saharan Africa.
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Some of the headings included in this issue of the Development Economics Prospects Group (DECPG) global daily economic news are as follows: financial markets; advanced markets; and emerging and developing economies in Europe and Central Asia, Middle East and North Africa, and Sub-Saharan Africa.
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Some of the headings included in this issue of the Development Economics Prospects Group (DECPG) global daily economic news are as follows: financial markets; advanced markets; and emerging and developing economies in Europe and Central Asia, and Middle East and North Africa.
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Some of the headings included in this issue of the Development Economics Prospects Group (DECPG) global daily economic news are as follows: financial markets; advanced markets; and emerging and developing economies in Europe and Central Asia, South Asia, and Sub-Saharan Africa.
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Some of the headings included in this issue of the Development Economics Prospects Group (DECPG) daily economic news are as follows: financial markets; advanced markets; and emerging and developing economies in East Asia and Pacific, Europe and Central Asia, Latin America and Caribbean, and South Asia.
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The recent reversal of capital flows to emerging markets has pointed up the continuing relevance of the sudden stop problem. This paper analyzes the sudden stops in capital flows to emerging markets since 1991.
... See More + It shows that the frequency and duration of sudden stops have remained largely unchanged, but that the relative importance of different factors in their incidence has changed. In particular, global factors appear to have become more important relative to country-specific characteristics and policies. Sudden stops now tend to affect different parts of the world simultaneously rather than bunching regionally. Stronger macroeconomic and financial frameworks have allowed policy makers to respond more flexibly, but these more flexible responses have not guaranteed insulation or mitigated the impact of the phenomenon. These findings suggest that the challenge of understanding and coping with capital-flow volatility is far from fully met.
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Several members of the Commonwealth of Independent States (CIS) rely heavily on remittances sent back by migrant workers, mainly in the Russian Federation, to support household incomes and the balance of payments.
... See More + Tajikistan is the most heavily dependent of the CIS countries on remittances, followed by Moldova and the Kyrgyz RepublicThis note analyses the macroeconomic impact of the fall in remittances in the Kyrgyz Republic and Tajikistan, the two smallest and poorest (in terms of per capita incomes) economies in the CIS. The following section (section 2) provides some background material on the growth of remittances and the contribution that they have made to the Kyrgyz and Tajik economies. This is followed by the third section which examines how they adjusted to the fall in remittances. The fourth section concludes.
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The Organization for Economic Co-operation and Development (OECD) is an intergovernmental organization that provides a forum for debating public policy designs and promote coordinated initiatives among its members through shared standards that assure its members’ long term development.
... See More + It was founded in 1961 and presently has 35 member states. Its mission is to promote policies that improve the economic and social wellbeing of people around the world. Peru wants to adopt the best governance practices and standards of OECD nations to build stronger institutions and so guarantee its long term development, narrow the inequality gaps and strengthen its development. Joining OECD presupposes turning the reform process into an ongoing process through permanent review and idea sharing mechanisms focusing on public policy and government practices.It will allow Peru to play a more active participatory role in preparing new solutions to global problems. This Country Program is a structured mechanism of joint cooperation created by the OECD to support emerging and dynamic economies like Peru’s in designing their reforms and strengthen their public policies.
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The development objective of the First Macroeconomic Management and Competitiveness Programmatic Development Policy Loan (DPL) Project for Kazakhstan is to support the Government of Kazakhstan (GoK) to implement reforms that: (i) strengthen the sustainability of the macroeconomic framework while protecting the vulnerable; and (ii) help improve competitiveness of the non-oil economy.
... See More + This operation, in the amount of United States (U.S.) 1 billion dollar, is the first of two operations in a programmatic series. The present series is aligned with the GoK’s reform program and is supported by analytical and reimbursable advisory services (RAS) under the country partnership strategy (CPS) for Kazakhstan (FY2012-FY17). Poverty reduction and shared prosperity have resulted from economic growth in multiple sectors, which have led to job creation and earnings growth. This DPL series responds to the government’s request for financing, underpinned by a strong set of policy measures that are expected to support the World Bank’s twin goals of ending extreme poverty and boosting shared prosperity. To that effect, the series supports reform measures related to fiscal consolidation (including expenditure efficiency and non-oil revenue increases), exchange rate liberalization (including moving to inflation targeting), private sector development, and financial sector efficiency. The World Bank Group has worked closely with the GoK on a wide ranging knowledge and investment agenda, which has resulted in relevant analytical work that has informed the programmatic operation.
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Cambodia continues to enjoy robust growth, albeit at a slightly slower pace. Real growth in 2014 is estimated to have reached 7.0 percent. The garment sector, together with construction and services, in particular finance and real estate, continues to propel growth.
... See More + However, there are signs of weaknesses in garment and agricultural production that are slightly slowing growth. Overall macroeconomic management remains appropriate. Fiscal consolidation continues with further improvements in revenue collection resulting from enhanced administration. Poverty continues to fall in Cambodia (poverty headcount rate in 2012 was 17.7 percent) although the pace of poverty reduction has declined significantly. Cambodia’s real growth rate is expected to moderate to 6.9 percent in 2015 and 2016, as it confronts stronger competition in garment exports, continued weak agriculture sector growth, and softer growth in the tourism sector. Recent developments include: the garment sector continues to be one of Cambodia’s main engines of growth, the external position remains stable, supported by healthy foreign direct investment inflows, underpinning the overall macroeconomic stability, Exchange rate targeting continues to support price stability, inflation has eased significantly with continuing depressed food prices and the recent decline in oil prices, and financial deepening continues, supporting economic expansion as deposit and credit growth accelerated quickly in 2014.
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